Misplaced Priorities
Vincent Russo, JD, LLM, CELA | January 14th, 2009The Deficit Reduction Act of 2005 uses the vehicle chosen to impose the most regressive changes to the Medicaid program since its creation in 1965, as a part of what President Johnson called “The Great Society”. Medicaid grew to be the major provider of long term care for our aged, blind and disabled.
Faced with increased costs it was decided to stop the growth and change the eligibility standards and claim this to be a deficit reduction effort. That designation is fictional because the 2005 Federal Budget increased the deficit to the highest level in our nation’s history. The 2005 budget as have previous budgets provide enormous sums for “humanitarian” aid to foreign nations. This aid includes food, shelter and medical care. Not surprisingly is that these are not “means tested” programs like Medicaid. There are few if any restrictions placed on humanitarian aid. We must then question whether Americans are less worthy of humanitarian aid then the citizens of 3rd world countries.
We don’t read reports of the overseas aid going to unworthy people who don’t really need it. Those reports are limited to humanitarian aid to Americans. There is no doubt that in any major aid program, there will be abuses, but the bulk of aid goes where is belongs. When we focus only on the abuses, we make changes that effect everyone as though they were an abuser. I question our priorities when we label our parents, our veterans, our teachers and our elderly population as abusers, because they access needed medical care. These are the people who help shape this nation. They were givers. Now when they need to be a taker, we are willing to turn our backs. Where are our priorities?
The so called Deficit Reduction Act, has created a 5 year look back period for anyone applying for nursing home care. Medicaid will now demand the applicant to produce 5 years of financial records. How many people maintain 5 years of financial records? You may have to pay a bank to get your copies. We know that with all the bank mergers, many of the banks within the 5 year period no longer exist. Their records may not be available. Even if records are obtained, Medicaid will question particular deposits and withdrawals going back 5 years. How do we expect an elderly citizen to remember the purpose of a deposit or withdrawal that occurred many years ago? Failure to remember could result in a denial of necessary medical care.
Consider a grandparent who pays tuition for a grandchild’s college. Tuition costs are high. The so-called deficit reduction act requires that the effective date of a gift is not when the gift was made which could have been 4 or 5 years ago, but rather the date the application to Medicaid for nursing home care. This grandparent could be denied Medicaid because of a tuition payment made, years before.
Our obligations to our elderly population are not met by attempting to deprive them of long term medical care. To those who say that the elderly need only prove that the gift was not for the purpose of getting Medicaid, I answer, why should such a person have to go through a legal proceeding, namely a Fair Hearing to prove the purpose of a 5 year old gift.
The so called Deficit Reduction Act also seeks to punish the elderly, because of the rise of real estate values over the past decade. If home equity exceeds $500,000 , the owner becomes ineligible for nursing home care. Our senior citizens don’t control real estate values. It is not appropriate to punish our seniors because our economy flourished and real estate values rose.
Knowing that many senior buy annuities to obtain a “safe” income stream, those who oppose Medicaid benefits, now require that any annuity purchased name Medicaid as the ultimate beneficiary. This is to prevent a senior citizen from leaving an inheritance to a loved one.
The real question raised by the so called Deficit Reduction Act is what has happened to our priorities. Have we allowed Medicaid expenditures to blind us to the contributions to this nation made by the seniors we now seek to punish because they got old and sick. If we spend a lot on the Medicaid care of our seniors, then we should do so gladly, because these are the people who took care of us, and now need us to take care of them.
The medical care of our senior citizens is the last place we should look to reduce our growing budget deficit.
Vincent J Russo, J.D., LL.M., CELA is the Managing Shareholder of the law firm of Vincent J. Russo & Associates, P.C. of Westbury, Lido Beach, Woodbury and Islandia, New York. Mr. Russo is a noted author, lecturer and advocate for seniors and people with special needs.
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Tags: deficit reduction act, elder care, financial reductions, humanitarian aid, long term care, medical care, misplaced priorities, retirement, vincent russo
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